TrueHireCost

Employee Cost Calculator

Employee Turnover Cost Explained With Worked Examples

TrueHireCost analysis: what employee turnover cost is, the four components (separation, vacancy, replacement, ramp-up), a worked $80,000 example, and how it relates to bad-hire and hiring cost.

Open the Calculator

What employee turnover cost is

The total cost of losing and replacing an employee — separation, vacancy, replacement, and ramp-up.

It is distinct from ongoing employee cost (which repeats every year) and from one-time hiring cost (which is the same replacement line measured up front). Turnover cost is what you spend because someone left.

The four components

Each component has its own formula and driver.

  • Separation: exit processing, severance, and admin — typically a few hundred to a few thousand dollars.
  • Vacancy: work left undone while the role is open — (salary ÷ 365) × days to fill.
  • Replacement: recruiting, advertising, interviews, screening, and onboarding — roughly the SHRM ~$4,700 cost-per-hire benchmark.
  • Ramp-up: lost productivity while the new hire reaches full output.

Worked example: an $80,000 employee

A full turnover cost breakdown for a representative $80,000 role.

Separation$500
Vacancy (45 days)$9,863
Replacement$4,700
Ramp-up$10,000
Total turnover cost$25,063

Related resources

Data Sources & Methodology

Every rate and formula is checked against the issuing agency before publication. Last updated 2026-08-24.

IRS

FICA, FUTA tax rate & wage base

U.S. DOL

FUTA credit, federal wage & hour

State Workforce Agencies

SUTA rates, wage bases, new-employer rates

BLS

Industry salary benchmarks & turnover

Frequently Asked Questions

What is the fully loaded cost of an employee?

The fully loaded cost of an employee is the total annual cost to employ them: base salary plus employer payroll taxes (FICA, FUTA, SUTA), workers’ compensation, benefits, and overhead. Using TrueHireCost’s current default assumptions, an $80,000 employee has an estimated annual employer cost of approximately $101,207. Actual costs vary by state, benefits, workers’ compensation, retirement contributions, and overhead. Under those defaults the loaded multiplier is about 1.27× base salary ($101,207).

How is the fully loaded employee cost calculated?

TrueHireCost adds employer FICA (7.65%), federal and state unemployment tax, workers’ comp (varies by state and industry), benefits, and overhead to the base salary. You can adjust each input for any U.S. state and industry.

What employer taxes do I pay on top of salary?

Employers pay 7.65% FICA (6.2% Social Security + 1.45% Medicare), FUTA (up to 0.6% on the first $7,000), state unemployment (SUTA), and state disability insurance where applicable.

Is the TrueHireCost calculator free?

Yes. The TrueHireCost employee cost calculator is free to use, requires no sign-up, and works for all 50 U.S. states and 20 major industries.

For Estimation Purposes Only

TrueHireCost provides cost estimates for informational purposes only and is not professional tax, legal, or HR advice. Actual employer costs vary by experience rating, industry classification, carrier, and jurisdiction. Consult a qualified CPA, tax advisor, or HR professional before making hiring or payroll decisions.